1/ Watching #btc volatility & thinking about current use cases, I finally appreciate why @VitalikButerin says it's important to make a StableCoin. Ppl should be able to store value w/o taking on all this currency risk.
Show this thread
-
Perhaps demand shift among alts could be dampened by a “basket of alts” coin, in analogy to a “basket of metals” dampening demand shift betw say gold & silver.
I like it! The issue for backing a token w/ one or more commodity/fiat is the counterparty risk (who holds the reserves?). But a stablecoin contract that securely holds and automatedly trades altcoins would be a trustless reserve.
-
-
In general I'm not sure how a network would securely hold private keys to accounts other networks, but it seems easy for an Ethereum contract to exchange/hold ERC20 tokens.
-
Perhaps http://prism.exchange could be used for this. Use ETH contracts to hold a basket of alts in proportion to their market caps. Provides stability without traditional reserve-holder-counterparty risk. Result = a synthetic “stablecoin”?
-
That's close to what I'm imagining. Market cap is nice since no rebalancing (important!). You would buy in/cash out using a full basket. Though I think vulnerability to exchange arbitrage or price-feed attacks is a serious concern.
-
I was also thinking, rather than keeping a cap-weighted basket, you let people buy in/sell out with any altcoin; converting at a rate based on the current valuation of that coin relative to the reserve pool. But that's potentially even more vulnerable to arbitrage.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.